The story about all of them being destroyed is correct, as I recall it too.
I think we (the chip community) knew about the chip because it was on the NGCB approval list with the other "Old Timers" (as being approved, for MGM Grand). As to WHY they were destroyed, I recall that it was not that Kirkorian didn't like his picture (as it was probably a stock photo supplied by MGM Grand), but that he wasn't crazy about being called an OLD TIMER (even though he was pretty advanced in years at the time). But I have nothing concrete to verify the above reason, only what I heard "through the grapevine".

I even wrote a letter to MGM, asking to purchase just 2 chips (the other was to go to Gene). I DID eventually get a letter back from the MGM Grand's Treasurer (!) saying sorry, the chips were not available. I even offered to contribute to the MGM's charity of choice, as a thanks for the chips, realizing they may have objected to SELLING their chips, since they are supposed to be "for gaming purposes only"... though at the time, MGM was producing "walking" LE's too, like a lot of other casinos. Examples: the Grand Opening, Betty Boop, Ty Murray and other chips that were released as mix-ins with rack chips, so a scavenger hunt was necessary to find them! (No going to the cashiers cage and just asking for a quantity of them!)

As for the Kirkorian "Old Timers" chip -- I struck out.

And that, as Paul Harvey used to say, is... the rest of the story.

Walt, you really scored by getting a notched sample from wherever you got it! Congrats on that!